New car on PCP advice

Blondie24

Hi,

I’m looking for some advice.

I got a brand new Audi on a PCP agreement back in 2015 and back in February I was due to upgrade my car, however my ex partner had committed Fraud using my name etc in between getting my car back in 2015 to 2016, where he left me in debt, which has now all been paid off etc. So I knew this had affected my credit rating which I had advised Audi & they said it shouldn’t be a problem as I’m only getting an upgrade & paying just slightly more than what I was paying for my current car for the new one per month. However I was declined. They left me with no other options, so I continued to pay my monthly installements as usual, however they called me back again in July & I had informed them what had happened back in February & they said again it shouldn’t be a problem they will try again, however it came back declined. So again...I have been left with no other options given to me by Audi regarding my current pcp agreement etc. However after doing some research, regarding pcp it states I can hand the car back if service is up to date etc, or I can pay a lump sum & own the car or the other option is to upgrade. However I wasn’t told any of this from Audi. So I’m continuing to pay for the car since February. Handing the car back is not an option as I need a car for work, paying a Lump some is also not an option, so where do I stand with this? Ideally I would like to upgrade my car & continue to pay as I currently do at the moment but I feel I’ve not been given any options at all from Audi.

Can anyone advice?

neilmcl

I'm sorry but you would've been told exactly what your options you have with a PCP agreement at the end of the term when you took out the deal, on top of this it will be explained clearly in the documentation you would have received.

When exactly did you get the car and how long is the PCP agreement for?

motorguy

Blondie24 wrote: »

Hi,

I’m looking for some advice.

I got a brand new Audi on a PCP agreement back in 2015 and back in February I was due to upgrade my car, however my ex partner had committed Fraud using my name etc in between getting my car back in 2015 to 2016, where he left me in debt, which has now all been paid off etc. So I knew this had affected my credit rating which I had advised Audi & they said it shouldn’t be a problem as I’m only getting an upgrade & paying just slightly more than what I was paying for my current car for the new one per month. However I was declined. They left me with no other options, so I continued to pay my monthly installements as usual, however they called me back again in July & I had informed them what had happened back in February & they said again it shouldn’t be a problem they will try again, however it came back declined. So again...I have been left with no other options given to me by Audi regarding my current pcp agreement etc. However after doing some research, regarding pcp it states I can hand the car back if service is up to date etc, or I can pay a lump sum & own the car or the other option is to upgrade. However I wasn’t told any of this from Audi. So I’m continuing to pay for the car since February. Handing the car back is not an option as I need a car for work, paying a Lump some is also not an option, so where do I stand with this? Ideally I would like to upgrade my car & continue to pay as I currently do at the moment but I feel I’ve not been given any options at all from Audi.

Can anyone advice?

This has nothing to do with Audi - this has to do with you, your finances and your ex partner.

You can hardly fault Audi for not wanting to take someone on with a poor credit history can you?

Nasqueron

If your ex committed fraud and you reported him to the police, proceeded with a prosecution and have all the details then you can have your credit record clean...


PCP details are always given to you to sign, particularly since 2005 when dealers became regulated. Your paperwork will show you were told you either trade in for the car's GMV and get a new one or pay off the balance or VT when you have paid back 50% of the total finance. There is no way you were not informed of this and the paperwork will prove this

Ectophile

You've got the two options you're entitled to at the end of a PCP - hand the car back or pay the lump sum and keep the car.


If someone else - such as your bank - will lend you the money, then you could borrow the lump sum and buy the car.


You can't force Audi's credit company to lend you the money to buy another car if they don't want to.


PCP deals are usually structured so that the lump sum payment is pretty much equal to the expected second-hand value of the car. So the "trade in" value is peanuts anyway. The whole "trade in" thing is really just a sales pitch to sell you another car on PCP, with the intention that you will never actually own a car, but will keep paying them every month to keep up a never-ending rolling credit deal.

foxy-stoat

Your original agreement would of stated the term and when you were due to hand it back or pay the balloon payment and own the car outright - upgrading isnt a right, as it will be subject to credit status.

You done need a brand new car to get to work by the way so you do have other money saving options, buy a cheaper car outright with a bank loan.

motorguy

Blondie24 wrote: »

Hi,

I’m looking for some advice.

I got a brand new Audi on a PCP agreement back in 2015 and back in February I was due to upgrade my car, however my ex partner had committed Fraud using my name etc in between getting my car back in 2015 to 2016, where he left me in debt, which has now all been paid off etc. So I knew this had affected my credit rating which I had advised Audi & they said it shouldn’t be a problem as I’m only getting an upgrade & paying just slightly more than what I was paying for my current car for the new one per month. However I was declined. They left me with no other options, so I continued to pay my monthly installements as usual, however they called me back again in July & I had informed them what had happened back in February & they said again it shouldn’t be a problem they will try again, however it came back declined. So again...I have been left with no other options given to me by Audi regarding my current pcp agreement etc. However after doing some research, regarding pcp it states I can hand the car back if service is up to date etc, or I can pay a lump sum & own the car or the other option is to upgrade. However I wasn’t told any of this from Audi. So I’m continuing to pay for the car since February. Handing the car back is not an option as I need a car for work, paying a Lump some is also not an option, so where do I stand with this? Ideally I would like to upgrade my car & continue to pay as I currently do at the moment but I feel I’ve not been given any options at all from Audi.

Can anyone advice?

What about contacting Audi Finance themselves and asking can you extend the agreement maybe for another year?

OR see if they would convert the balance to an HP agreement?

Dobiesmon

I had a problem nearly the same my pcp at the end of the 3 years I had to find 6,000 or give the car back as refinancing with the car company said no due to ccj due to ex husband even though I have had fords and never missed any payments with the cars I have had with them 3 infact
so I took out a loan with amigo loans paid ford the money now 5 years later due to have a new car oh yes they are happy to finance £2,500 and me px my car plus cash .but financing the 2.500 will help towards credit ref

Mercdriver

Amigo's 49.9% APR representative isn't at all moneysavers.

kaz04

Hi
Please read your PCP contract. If you have already paid 50% of the total amount payable under the terms , you have a right to terminate the agreement, and ask them to take the car back.
Then you can approach other companies who could give you a new lease or contract.

Mercdriver

kaz04 wrote: »

Hi
Please read your PCP contract. If you have already paid 50% of the total amount payable under the terms , you have a right to terminate the agreement, and ask them to take the car back.
Then you can approach other companies who could give you a new lease or contract.

Which is all very well if you have a fairly decent credit record. The OP has alluded to the fact that their report isn't perfect (not that it needs to be). If they can get a reasonable bank loan with a reasonable APR, then it might be an idea to pay off the balance. The upside to this route is that if the OP has any issues paying, they still have the use of the car, whereas get in arrears with a loan secured to the car, then the OP ends up in a vicious cycle. Needing the car to go to work to pay off the debt and the finance house having taken the car back.

At least with an unsecured loan, if the OP gets into any difficulty it could be put into an arrangement via debt charities, and get to keep the car.

It all comes down to affordability. Handing back the car and then getting refused credit on a new one would put the OP in a pickle. If the OP is happy with what they have, then it might be a better idea to get a loan to pay off the balloon.